India’s overall trade deficit widened in May 2026 as a sharp rise in imports outpaced robust export growth, according to provisional data released by the Ministry of Commerce and Industry.
Combined merchandise and services exports rose to $81.96 billion in May, up from $70.76 billion in the same month last year, reflecting strong global demand for Indian goods and services. However, imports increased at a faster pace, climbing to $92.47 billion from $77.55 billion a year earlier.
As a result, the country’s overall trade deficit expanded to $10.51 billion in May 2026, compared with $6.79 billion in May 2025.
Merchandise exports reached a record monthly high of $45.20 billion, surpassing the $38.30 billion recorded a year ago. The Commerce Ministry described the figure as a new all-time monthly export milestone, underscoring the resilience of India’s export sector amid global economic uncertainties.
At the same time, merchandise imports surged to $73.41 billion from $60.86 billion in May 2025, widening the goods trade gap and remaining the primary contributor to the overall deficit.
India’s services sector continued to perform strongly, with exports rising to an estimated $36.76 billion from $32.46 billion a year earlier. Services imports also increased, reaching $19.06 billion compared with $16.70 billion in May 2025.
The services trade surplus continued to offset part of the merchandise trade deficit, though it was insufficient to prevent the overall trade gap from widening.
The latest figures highlight a dual trend of strong external demand for Indian exports and robust domestic consumption driving imports. While record merchandise exports provide a positive signal for the economy, policymakers are likely to closely monitor the widening trade deficit amid elevated commodity prices and rising import bills.
